Governance, corruption, and trade in the Asia Pacific region

Kazutomo Abe and John Wilson

No 4731, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade and welfare gains for Asia Pacific Economic Cooperation members, with increased transparency and lower levels of corruption. Results suggest that trade in the region would increase by 11 percent and global welfare would expand by $406 billion by raising transparency to the average in the region. Most of the increase in welfare would take place in member economies undertaking reform. Among the reformers, the gross domestic product of Vietnam, Thailand, Russia, and the Philippines would increase approximately 20 percent. The benefits to Malaysia and China would also be substantial with increased transparency and lower levels of corruption.

Keywords: Economic Theory&Research; Free Trade; Trade Policy; Emerging Markets; Currencies and Exchange Rates (search for similar items in EconPapers)
Date: 2008-09-01
New Economics Papers: this item is included in nep-cmp, nep-dev, nep-sea and nep-tra
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4731

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